Natural justice in GST assessments: lack of hearing led to quashing, remand, and lifting of bank attachment.

An assessment based on mismatch between GSTR-3B and auto-populated GSTR-2A was quashed because the taxpayer was not afforded a reasonable opportunity and personal hearing before the order was issued. Although the taxpayer had not monitored the GST portal despite being registered, the denial of hearing was treated as sufficient ground for interference. The matter was remanded for fresh consideration after reply and personal hearing, subject to deposit of 10% of the disputed tax demand, and the bank attachment was directed to be lifted consequentially.

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Issues: Whether the assessment order, passed without affording a reasonable opportunity and personal hearing, was liable to be quashed and the matter remanded with conditions.

Analysis: The assessment demand arose from a mismatch between the GSTR 3B returns and the auto-populated GSTR 2A returns. The order disclosed that the petitioner was not heard before it was issued. Although the petitioner had failed to monitor the GST portal despite being a registered person, the denial of hearing warranted interference. The matter was therefore required to be reconsidered after granting an opportunity to reply and a personal hearing, with the petitioner being put on terms by requiring payment of 10% of the disputed demand.

Conclusion: The assessment order was quashed and the matter was remanded for fresh consideration subject to deposit of 10% of the disputed tax demand, with consequential lifting of the bank attachment.

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